Skip to main content

RBS Not Depending On Kindness Of Jeff Sessions

There is some serious kilt-wetting going on about our soon-to-be new AG.
  • Author:
  • Updated:

We still don’t know what kind of Attoney General Jefferson Beauregard Sessions III will be.


Will it be the Jeff Sessions who called Dodd-Frank “an overreach,” joining with his billionaire Cabinet colleagues to go easy on Wall Street-types? Or will it be Jeff Sessions, former prosecutor and Tea Party hero, who voted to tell high finance to drop dead during the financial crisis and who told Wall Street, “We love you, but we’re going to be representing Americans by the millions?”

The Royal Bank of Scotland, living up to the Scots’ national reputation for pessimism, seems to be betting on the latter. Having failed to put this “legacy litigation issue” behind it with the outgoing and overeager Obama Justice Department, RBS is trying to calculate just how friendly Sessions might be to finance. It’s not a pretty calculation.

The Royal Bank of Scotland said on Thursday that it would set aside an additional $3.8 billion in its fourth quarter for investigations and litigation in the United States….

Including the latest provision, R.B.S. has set aside 6.7 billion pounds, or about $8.4 billion, for inquiries and litigation related to the sale of such securities in the United States.

For comparison purposes, that’s $1.2 billion more than Deutsche Bank got off paying last month. And remember: Justice first asked DB to pony up essentially its entire market cap. RBS is currently worth something like $35 billion. Maybe Sessions goes for a big splash by topping BofA’s $16.65 billion deal. If the Mexicans won’t pay for the Wall, maybe the Scots will.

R.B.S. Adds $3.8 Billion to Mortgage Inquiry Provisions as Rivals Settle [DealBook]


RBS Celebrates £1.6 Billion Charge

Life is like a box of chocolates...Massively-painful fine flavored chocolates.

Getty Images

RBS’ Legal Reserve Starts Coming In Handy

It’s a big check, but not the biggest.

See page for author [Public domain], via Wikimedia Commons

RBS Still On Track For Aluminum Unprofitability Anniversary

The Scots are not quite ready to make money again.

Still just a glimmer in the would-be manipulator's eye. By JHerbstman [Public domain], via Wikimedia Commons

If There’s An Opaque Trade That Banks Control, They’re Probably Gonna Manipulate It

The Justice Department wants to have a little chat with some banks about when-issued securities.

RBS Gets Head Start On Eighth Consecutive Annual Loss

One quarter(-ly loss) down, three to go.

Getty Images

RBS Sets Aside Nine Figures For Looming Unfortunate Event

And this time, it’s not even one of its own making.

RBS Down One Excuse For Not Paying Dividends

Don't worry, they've still got a bunch more to go.